The above quote comes from the CMO of a multi-national FMCG.
Naturally (and by recent experience), we wouldn’t agree with it.
As we are seeing lockdowns again in many parts of Europe, CMOs have to plan for 2021. Many are asking us: Are our budget allocation tools still reliable in the #newnormal or is it back to gut feel while steering through the fog?
#MMMs help to quantify the impact of marketing activities on an economic outcome such as sales. In spring, Covid-19 disrupted this equation big time. The impact differs by category – just think gastro beer sales vs. hand sanitizer – and by media channel: #OOH was less effective during lockdowns vs. its long-term average.
After this initial shock however, the focus of many @Analyx clients shifted towards adapting budget allocation tools to new realities:
- Incorporate data that helps MMMs separate “Covid impact” from the impact of marketing activities. Examples are data that capture changes in consumer mobility.
- Refresh the MMMs more often in order to account for changes in demand and media effectiveness. This can be done semi-automatically and allows marketers to adjust optimal marketing mix faster in a volatile world.
How do you approach marketing planning in volatile times? Please write to us…
PS: On this matter, we also highly recommend the crisp thoughts of Prof. Koen Pauwels, e.g. here: https://youtu.be/LyfU41pTGPY
Image credit: https://www.flickr.com/photos/never_edit/